GUIDELINES FOR CUSTOMER SERVICES AND …

1 GUIDELINES for CUSTOMER SERVICES and Complaint management GUIDELINES FOR CUSTOMER SERVICES AND COMPLAINT management Financial Integrity & CUSTOMER SERVICES Department ( CUSTOMER SERVICES Division) Bangladesh Bank June 2014 GUIDELINES for CUSTOMER SERVICES and Complaint management CHIEF ADVISOR Sitangshu Kumar Sur Chowdhury Deputy Governor ADVISOR S. M. Moniruzzaman Executive Director CHIEF CO-ORDINATOR Md. Saiful Islam General Manager CO-ORDINATOR Swapan Kumar Roy Deputy General Manager MEMBERS OF THE WORKING GROUP Sarder Al Emran Joint Director Abdur Razzak Deputy Director Md. Sayedul Islam Deputy Director Financial Integrity & CUSTOMER SERVICES Department GUIDELINES for CUSTOMER SERVICES and Complaint management TABLE OF CONTENT PART-1 INTRODUCTION Chapters Topic Page Number Overview 01 Objectives of the GUIDELINES 02 Legal Basis 02 Application 02 PART-2 CUSTOMER SERVICES Institutional Framework 03 Functions of Central CUSTOMER Service & complaints management Cell (CCS & CMC) 04 Functions of Zonal CUSTOMER Service & complaints management Cell (ZCS & CMC) 05 Functions of Branch Level CUSTOMER Service & complaints management Desk (BLCS &CMD)

2 06 Institutional Approach to CUSTOMER SERVICES 06 Policy for General management of the Branches 07 Code of Conduct 08 Service Standards 10 CUSTOMER Charter 10 Displaying the Details of the Officials of CUSTOMER SERVICES and Complaint management Cells 13 CUSTOMER Awareness Program 13 PART-3 COMPLAINT management Complaint Lodgment Procedure 16 Complaint Recording 17 Prioritization of complaints 17 Complaint Resolution Process 18 Attitude and Attributes of Complaint Handling Officials (CHO) 22 Time Limit for Complaint Resolution 23 Control and Compliance 23 Reward and Punishment 24 Root Cause Analysis and Policy Formulation 25 ANNEXURE 27-30 GUIDELINES for CUSTOMER SERVICES and Complaint management 1 PART-1 INTRODUCTION Overview: Banks/Financial Institutions (FIs), now-a-days, are not only profit making institutions, rather these are the organizations for providing financial SERVICES to the people. The banking system in Bangladesh is still the most important conduit for delivery of financial SERVICES .

3 And that s why the matter of CUSTOMER SERVICES is the prime factor in banking industry. With the rapid expansion of banking net-work within the country the demands and expectations for service of the customers are increasing rapidly and therefore the quality and content of dispensation of CUSTOMER service has come under tremendous pressure mainly owing to the failure to handle the soaring demands and expectations of the customers. The vast net-work of branches spread over the entire territory with millions of customers and a complex variety of products and SERVICES offered, add to the enormity and complexity of banking operations in Bangladesh giving rise to complaints for deficiencies in SERVICES . Bangladesh Bank, as the regulator of the banking sector, has therefore been actively involved in the review, examination and evaluation of CUSTOMER service in Banks/FIs. It constantly brings into sharp focus the inadequacy in banking SERVICES available to the common people and endeavors to improve the quality and standard of CUSTOMER SERVICES of Banks/FIs through instructions/ GUIDELINES .

4 Financial consumer protection has called for regulators to be able to set minimum standards for financial products to ensure fair contract terms and charges, and comprehensibility. However, in response to competitive business environment and changing consumer demands, CUSTOMER SERVICES and consumer protection issue become more complex and diverse. This diversification has been continuing remarkably. In order to minimize such type of complexity and diversity of SERVICES provided by this sector, the regulatory framework for Bank/FIs has to be reviewed for further enhancement of the clientele protection. The GUIDELINES are structured and focused on the aspects of institutional and individual ethical standard, CUSTOMER service quality, CUSTOMER awareness program and complaint management system. BB puts forward this document for the purpose of providing GUIDELINES to all bank companies and financial institutions on CUSTOMER SERVICES and complaint management systems that are expected to be in place.

5 The document sets out minimum standards that shall be expected to be achieved by complaint cells of any banking company /financial institutions. GUIDELINES for CUSTOMER SERVICES and Complaint management 2 OBJECTIVES OF THE GUIDELINES : These GUIDELINES are formulated with some specific objectives like attaining and retaining customers' satisfaction & interest protection, banks/financial institutions goodwill, reputation and above all financial stability. Therefore, the aims of these GUIDELINES are- a. To provide proper and uniform guidance to all Banks/FIs to set up and follow up their institutional ethical standards, individual code of conduct and CUSTOMER charter. b. To promote fair, equitable and effective service-practices by setting up minimum CUSTOMER service standard in banking/financial sector. c. To increase transparency in financial SERVICES . d. To foster confidence in the financial service sector. e.

6 To provide a formal framework of complaint cell in each bank. f. To provide operational and managerial guidance uniformly to all bank officials to handle and manage the customers complaints satisfactorily, quickly, effectively and efficiently. g. To develop consumer activism through a structured consumer awareness and education program. LEGAL BASIS: These GUIDELINES are issued by BB under section 45(1) of Bank Company Act, 1991 (Amended upto 2013) .The instructions described in the GUIDELINES are supplementary to the standards set by the legislative requirements and these will not replace or supersede those. APPLICATION: These GUIDELINES deliberate the complete procedures to ensure the comfortable and affordable CUSTOMER SERVICES provided by the banks/FIs in a more prudent way. It will also address the responsibilities of banks/FIs to their customers. The GUIDELINES will also emphasize the risk management issues associated with the CUSTOMER SERVICES .

7 So, The GUIDELINES shall be applicable to all Banks and financial institutions regulated by Bangladesh Bank. GUIDELINES for CUSTOMER SERVICES and Complaint management 3 PART-2 CUSTOMER SERVICES INSTITUTIONAL FRAME WORK: CUSTOMER service should be projected as a priority objective of a bank along with its profitability, growth and social responsibility and therefore the Managing Authority of each bank/FI should have direct involvement with CUSTOMER service quality. With this end in view each bank shall form a separate framework for CUSTOMER SERVICES and complaint management . With a view to strengthening the corporate governance structure of the bank/FI and also to bring about improvement in the quality of CUSTOMER SERVICES of the Banks/FIs, each bank/FI shall constitute CUSTOMER Service & complaints management Cells as stated below- At the head office/country office level this cell will be named as Central CUSTOMER Service & complaints management Cell (CCS&CMC).

8 It will be constituted under the direct supervision of the Managing Director or the Chief Executive Officer (CEO)/Country Manager of the bank. Of course, there are complaint cells in existence in the head offices of the Banks/FIs at present. These complaint cells at the head offices of the Banks/FIs will be renamed as CCS&CMC. It may be mentioned here that this cell will be exclusively for dealing with the complaints & CUSTOMER Service related matters. The number of personnel of this cell will be determined by the Managing Authority of the bank. The personnel of this cell will be the dignitaries and they will be delegated with adequate power to settle the disputes with due diligence. Under the Central CUSTOMER Service & complaints management Cell (CCS&CMC) there will be the Zonal CUSTOMER Service & complaints management Cell (ZCS&CMC). Herein also it may be mentioned that the existing Zonal Complaint Cells in the zonal offices of the Banks/FIs will be renamed as the Zonal CUSTOMER Service & complaints management Cells (ZCS&CMC).

9 The size of the ZCS&CMC (the number of man-power and category of dignitaries) will be determined by the zonal head of the bank/FI. Under the Zonal CUSTOMER Service & complaints management Cell (ZCS&CMC) there will be Branch Level CUSTOMER Service & complaints management Desk (BLCS&CMD).The number of personnel will be determined by the branch manager taking into consideration the number of customers as well as the number of employees of the branch. In the case of very limited or short man-power of the branch, at least one official must be deployed in the BLCS&CMD. GUIDELINES for CUSTOMER SERVICES and Complaint management 4 The Institutional Frame Work is shown in diagram below: THE FUNCTIONS OF THE CENTRAL CUSTOMER SERVICE & complaints management CELL ( CCS & CMC ): POLICY RELATED FUNCTIONS: The Cell shall, illustratively, play the following policy related roles in developing the standard of CUSTOMER SERVICES of the bank: 1.

10 Establishment of some basic institutional approach or ethical principles regarding CUSTOMER SERVICES in the bank. 2. Issuance of necessary CUSTOMER - service- related policy for general management of the CUSTOMER SERVICES in the branches. 3. Formulation of Code of Conduct for bank officials (As per ). 4. Formulation of Service Standard and CUSTOMER Charter in each bank. (As per & ) 5. Promulgation of CUSTOMER awareness program (As per ). 6. Arrangement of quarterly meeting to review CUSTOMER SERVICES , systematic deficiencies and take corrective measures thereon. 7. The Cell shall submit a brief half yearly report to the board stating the status of complaints received, resolved and outstanding with suggestions for improvement of quality service or products. HeadOffice Central CUSTOMER Service & complaints management Cell (CCS&CMC)Zonal Office Zonal CUSTOMER Service & complaints management Cell (ZCS&CMC)Branch Office Branch Level CUSTOMER Service & complaints management Desk (BLCS&CMD) GUIDELINES for CUSTOMER SERVICES and Complaint management 5 OPERATIONAL FUNCTIONS : 1.